DUBAI: It was business as usual at Dubai Mall on Monday as consumers shrugged off the introduction of value added tax (VAT) to indulge in one of the UAE’s favorite pastimes: Holiday mall shopping and relaxing.
The mall, which claims to be the biggest in the world by footfall (the number of people entering it), was thronged on New Year’s Day, despite the 5 percent price hike that appeared to be pretty universally applied.
Retail assistants reported that there was little difference between business on Dec. 31 — when prices were in theory 5 percent lower — and Jan. 1 after the imposition of VAT. Many retailers appeared to be willing to absorb the increase, at least on small-ticket items, for the time being.
At the upmarket home-appliances store Dyson, an assistant explained: “This is Dubai, and people love to shop. They do not care about 5 percent, but it might be different when goods go back to full price later this month.”
The festive season coincides with the month-long Dubai Shopping Festival (DSF), when retailers encourage sales by offering big discounts — up to 40 percent — off normal prices. The impact of VAT would become more apparent after this promotional period closes at the end of January, the assistant explained.
But Dubai Mall, run by the real estate developer Emaar, was as hectic as usual on New Year’s Day. By early afternoon, parking in the Fashion Avenue sector could only be had on the ninth floor of the huge car park, and as the afternoon wore on the mall became increasingly packed.
Some retailers had foreseen a dampening of demand because of the VAT rise, and were willing to offer discounts to offset the new sales tax. In the LG electronics shop, a new top-of-the-range line of mobiles came with a discount of around 10 percent. The store was busy, but not packed.
It was a different story across the walkway in Sharaf DG, where the new iPhone X was on sale at 4,965 dirhams ($1,352), compared to a price of 4,729 dirhams on New Year’s Eve. Haggling for a discount to compensate for the VAT rise was counterproductive.
“We can sell the new phone for top price,” the assistant explained. He did, however, offer a significant discount on the less popular iPhone 8.
In the Kinokuniya bookshop, a receipt for two books totalling 168 dirhams was headed “tax invoice,” and had a separate line for “VAT inclusive 5 percent”, totalling 8 dirhams. “Everybody is asking for the receipt. Maybe they want it as a souvenir,” the counter assistant joked.
The bookshop, the biggest in the UAE and one of the most popular in the Middle East, appeared to be doing a brisk trade, with families prominent among shoppers.
Some stores selling goods that might be considered for VAT exemption — like the Ortopedia children’s shoe store selling specialist footwear — had already increased prices by 5 percent. “There were a lot of people buying yesterday ahead of the increase,” the assistant said.
Some foodstuffs are also VAT exempt in the UAE, but that does not extend to food regarded as falling under the category of “discretionary spending.” A bag of cheese crisps in a mini-market in the mall was unchanged in price at 2.50 dirhams, but the receipt showed that included 13 fils as VAT. The store had declined to impose the full charge of 2.63 dirhams, which in any case would have been difficult to pay given the lack of coinage at such small denominations.
The shrewd shopper could even pick up huge bargains, regardless of the new tax. In Jimmy Choo, the glitzy women’s shoe shop, the assistant explained that prices were unchanged because management was still considering the timing of passing the increase on to consumers.
So a pair of glitzy shoes with 10cm heels with gold-painted leather, and encrusted with huge stones on chains, could still be found with a price tag of 8,000 dirhams, rather than the official post-VAT price of 8,400 dirhams.
“But we’re offering a 40 percent discount during the DSF. You can have them for 4,500 dirhams,” the assistant said.
Business as usual at Dubai Mall as shoppers shrug off VAT hike
Business as usual at Dubai Mall as shoppers shrug off VAT hike
PIF’s Lucid’s quarterly deliveries rise, Amazon-backed Rivian’s fall sharply
BENGALURU: Electric automaker Lucid posted a 58 percent jump in first-quarter deliveries on Wednesday as it lowered prices of its vehicles, while peer Rivian Automotive reported a 36 percent decline.
The Public Investment Fund-backed Lucid has also offered incentives including cheaper financing to woo customers away from less expensive hybrid vehicles amid high interest rates.
However, the company estimated revenue between $232 million and $236 million for the first quarter ended March 31, below Wall Street estimates of $256.3 million, according to LSEG-compiled data.
Shares of Lucid and Rivian were down around 5 percent in extended trading.
Lucid delivered 3,109 vehicles during the first quarter, compared with 1,967 in the same period last year. It produced 2,212 vehicles during the quarter ended March 31, up 28 percent, with more than 600 additional vehicles in transit to the Gulf country for final assembly.
Rivian has been battling tough demand as consumers opt for cheaper hybrid and gas-powered vehicles in an uncertain economic and political environment.
“I would say the sector at the moment is out of favor. Over the medium to long term, EVs are still inevitable, and so it’s just going to take some time for these companies to continue to ramp up,” said Andres Sheppard, senior equity analyst at Cantor Fitzgerald.
Rivian CFO Claire McDonough had said in February vehicle deliveries would be lower this year due to soft demand, partially because of the impact of fires in Los Angeles.
Demand could be further pressured as US President Donald Trump’s tariff policies are expected to accelerate inflation and increase prices of automobiles, making consumers wary of committing to big purchases.
Rivian CEO RJ Scaringe had said earlier this year the company expects higher costs from tariffs on Mexico and Canada as it has a supply chain footprint in these countries.
The company delivered 8,640 vehicles in the quarter ended March 31, down from 13,588 a year earlier. But the deliveries exceeded analysts’ estimate of 8,200, according to Visible Alpha.
Rivian produced 14,611 vehicles in the first quarter, compared with 13,980 a year ago. It reaffirmed its annual deliveries forecast.
Lucid and Rivian will report their first-quarter results on May 6.
In January, Lucid Motors has become the first global automotive company to join the Kingdom’s “Made in Saudi” program, which grants the firm the right to use the “Saudi Made” label on its products.
Lucid’s participation in the program follows the launch of its first international manufacturing plant in Saudi Arabia in September 2023.
Located in King Abdullah Economic City, the facility is the Kingdom’s first-ever car manufacturing plant and can currently assemble 5,000 Lucid vehicles annually during its first phase.
Once fully operational, it is expected to produce up to 155,000 electric cars per year.
Oil Updates — crude slumps as Trump’s higher-than-expected tariffs expected to crimp demand
- Brent, WTI sink as much as 3 percent, biggest percentage drop in a month
- Trump to impose 10 percent minimum tariff on most import goods
- Imports of oil, gas, refined products exempted from new tariffs
SINGAPORE: Oil prices fell by as much as 3 percent on Thursday after US President Donald Trump announced sweeping new tariffs that investors worry will enflame a global trade war that will curtail economic growth and limit fuel demand.
Brent futures were down $1.97, or 2.63 percent, to $72.98 a barrel by 9:35 a.m. Saudi time after dropping by as much as 3.2 percent earlier, the biggest daily percentage decline since March 5.
US West Texas Intermediate crude futures were down $2.01, or 2.80 percent, to $69.70 after slipping by as much as 3.4 percent earlier.
Trump on Wednesday unveiled a 10 percent minimum tariff on most goods imported to the US, the world’s biggest oil consumer, with much higher duties on products from dozens of countries, kicking into high gear a global trade war that threatens to drive up inflation and stall US and worldwide economic growth.
“The US tariff announcement clearly caught markets off guard. Pre-announcement speculation suggested a flat 15-20 percent tariff, but the final decision was more hawkish,” Yeap Jun Rong, market strategist at IG, said in an email.
“For oil prices, the focus now shifts to the global growth outlook, which is likely to be revised downward due to these higher-than-expected tariffs,” he added.
Imports of oil, gas and refined products were exempted from the new tariffs, the White House said on Wednesday.
The tariffs sent markets reeling on Thursday, with Japan’s Nikkei plunging to an eight-month low, China’s yuan dropped to its lowest levels in seven weeks and stock markets slumped in early Asia trade.
“We know it will be negative for trade, economic growth and thus oil demand growth. But we don’t know how bad it will be as the effects come a little bit down the road,” said Bjarne Schieldrop, chief commodities analyst at SEB.
On Wednesday, UBS analysts cut their oil forecasts by $3 per barrel over 2025-2026 to $72 per barrel, citing weaker fundamentals.
Traders and analysts now expect more price volatility in the near term, as the tariffs may change as countries try to negotiate lower rates or enact retaliatory levies.
Market participants are also waiting for clarity on OPEC+ production outlook as the group is meeting on Thursday.
The group is set to proceed with its schedule to raise oil output by 135,000 barrels per day in May, and discuss how to convince Kazakhstan to stop exceeding its output quota and plans to compensate for overproduction, sources told Reuters.
Reinforcing the bearish sentiment, the Energy Information Administration data on Wednesday showed US crude inventories rose by a surprisingly large 6.2 million barrels last week, against analysts’ forecasts for a decline of 2.1 million barrels.
Inventories gained amid a surge in imports from Canada, which had expected to be hit with tariffs on its crude shipments to the US
The EIA data also showed gasoline demand was lower last week and refinery runs were lower at a time of year that plants should be producing more fuel ahead of the summer driving season.
OPEC+ to meet over excess Kazakh oil output
- OPEC+ members are scheduled to raise oil output by 135,000 barrels per day in May
LONDON: Eight members of OPEC+, the oil producers group led by Saudi Arabia and Russia, will meet on Thursday to discuss how to convince Kazakhstan to stop exceeding its output quota and how it can compensate for overproduction.
Record Kazakh output has angered several other members of the group. The meeting “is just to make the new Kazakhstan minister aware of the importance of meeting his required production and compensating for the surplus,” one delegate said. Erlan Akkenzhenov was appointed Energy Minister last month.
OPEC+ members are scheduled to raise oil output by 135,000 barrels per day in May, and the group is expected to proceed with this plan. The May increase is the next increment of a plan agreed by Saudi Arabia, Russia, the UAE, Kuwait, Iraq, Algeria, Kazakhstan and Oman to gradually unwind their most recent output cut of 2.2 million barrels a day, which came into effect this month.
OPEC+ also has 3.65 million barrels a day of other output cuts in place until the end of next year. This week Russia ordered the Black Sea terminal handling Kazakhstan’s oil exports to close two of its three moorings, a move which is widely expected to slash the country’s production as a result.
New Saudi real estate directives reinforce home ownership goals: Finance minister
RIYADH: Saudi Arabia’s newly announced real estate directives underscore the Kingdom’s commitment to increasing homeownership among its citizens, according to the finance minister.
The changes were initially announced in March, following a comprehensive study by the Royal Commission for Riyadh City and the Council of Economic and Development Affairs.
The review examined land price dynamics and rental pressures in Riyadh and proposed a set of regulatory and planning solutions aimed at long-term market stabilization.
Among the key provisions is the lifting of restrictions on land transactions and development in targeted areas of northern Riyadh.
In an interview with Alekhbariyah, Mohammed Al-Jadaan said Crown Prince Mohammed bin Salman’s mandates are intended to raise the proportion of Saudi families who own homes to 70 percent by 2030 – up from 47 percent in 2016.
“The generous directives will contribute to reducing volatility and controlling the rise in real estate sector prices, and will also limit inflation in the Kingdom’s economy,” Al-Jadaan stated.
The move authorizes the sale, purchase, division, and subdivision of land, as well as the issuance of building permits, across a 17-sq.-km area bordered by King Khalid Road and Prince Saud bin Abdullah bin Jalawi Road, and a 16.2-sq.-km section north of King Salman Road, extending to Abu Bakr Al-Siddiq Road and the Al-Qayrawan District.
These areas, combined with previously released plots, bring the total available for development to 81.48 sq. km.
Al-Jadaan said the expanded land access will tighten the supply and demand gap in the real estate sector by lifting restrictions on transactions and development in northern Riyadh.
He noted that developers are expected to respond by expanding commercial and residential projects, ultimately easing price pressures.
To further facilitate home ownership, the RCRC has been tasked with delivering between 10,000 and 40,000 fully planned and developed residential plots annually for the next five years.
These will be priced at no more than SR1,500 ($399.87) per sq. meter and made available to married citizens or individuals over the age of 25 who do not currently own real estate.
The issued plots will be subject to resale, rental, and mortgage restrictions for 10 years unless used to finance construction. If the land remains undeveloped within that time, ownership will revert to the government, with the buyer reimbursed.
Al-Jadaan emphasized that these changes would improve access to financing. Saudi citizens will have better chances to obtain financial support to own a residential home or a commercial estate, he explained.
Additional reforms include amendments to the white land fees system, to be implemented within 60 days, aimed at incentivizing the development of unused land.
Within 90 days, the government will introduce new regulatory measures to ensure balanced relationships between landlords and tenants.
The General Authority for Real Estate and the RCRC will monitor price trends and submit periodic reports to evaluate the effectiveness of the measures.
Al-Jadaan further noted that these initiatives prove the Kingdom’s ability to stabilize the real estate sector’s volatility through entities, institutions, and regulations.
Saudia expands European footprint with seasonal Vienna, Athens routes
RIYADH: Saudi Arabia’s national carrier Saudia has launched direct flights to Vienna and Athens as it enhances its presence in Europe as part of a broader network expansion strategy.
The airline will operate three weekly flights to the Austrian capital, which began with an Airbus A320 service from King Abdulaziz International Airport to Vienna International Airport, the company said in a statement.
Saudia plans to extend the service with flights from Riyadh’s King Khalid International Airport starting in June.
The aviator also launched seasonal flights to Greece’s capital, which will run three times per week, with the inaugural flight departing from Riyadh on April 2, also operated by an Airbus A320.
The national flag carrier is also set to introduce flights from Jeddah to Athens starting in June 2025.
The routes are part of a previously announced plan to introduce 11 new destinations this year, including Venice, Athens, and Nice as well as Malaga and Bali.
The expansion comes as Saudia posted a 16 percent year-on-year increase in international passenger traffic in 2024, aligning with the Kingdom’s National Tourism Strategy, which targets 150 million annual visitors by 2030.
Marking the Vienna flight, the airline posted on its official X account: “This new destination is an addition to Saudia’s network of over 100 destinations across four continents, supporting national efforts to grow tourism, entertainment, sports, and religious travel, including Hajj and Umrah.”
The new routes come after the airline launched a three-weekly service to Bali earlier this week, its second regular route to Indonesia after Jakarta.
Last month, the airline also signed an agreement with Indonesia’s Ministry of Religious Affairs to expand pilgrim transportation and improve services for the 2025 Hajj season.
The new services strengthen Saudia’s role in the Kingdom’s Air Connectivity Program, which has introduced more than 60 direct international routes since its 2021 launch.
With a fleet of 147 Boeing and Airbus aircraft, the airline plans to expand further, with 118 new aircraft set to join its operations.
As part of its 2025 network expansion, Saudia is also set to launch flights to Antalya, Turkiye, and Salalah, Oman, underscoring its broader goal of increasing global market share and positioning itself as a key player in international travel.
